It’s crunch time for GM Korea today – the beleaguered company is holding a board meeting later this evening to make a decision on whether to file for bankruptcy if it fails to reach an agreement over its turnaround and restructuring plans, Yonhap News Agency reports.

Meanwhile, the company and its union are said to be continuing talks in a last-minute effort to avoid it being placed under court protection. Discussions are hoping to find common ground in the rescue plan, with GM looking at wage concessions and the suspension of some benefits for workers. Talks up to now have failed to reach a preferred situation. Even if an agreement is reached, a deal would still be subject to a vote by union members.

In February, the automaker said it was shutting down one of its four South Korean factories by May, stating unequivocally that union concessions as well as government support were needed for it to remain operating in South Korea. The country’s finance minister Kim Dong-yeon has however said that public funds can only be used to support the company if it was clear that the business could survive on its own long-term.

State-run Korea Development Bank (KDB), which holds a 17% stake in GM Korea, has said it could inject about 500 billion won (US$470 million) into the company if it finds the results of due diligence on the unit satisfactory, the report added.

The company – which produces a variety of Chevrolet models – recently posted an annual net loss of US$1.1 billion (RM4.28 billion), its fourth straight year in the red. Some 2,600 employees out of the company’s total workforce of 26,000 have filed for voluntary retirement and applied for a redundancy package.